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10 Steps to the Construction Business Process

03 June 2023 by Shweta Jhajharia

It takes more than simply an enthusiasm for construction to run a successful construction company. It requires a strategic mentality, the proper teams, and a lot of work to succeed in this fiercely competitive sector, and to keep on succeeding!

Owners of construction companies need to be aware of a variety of challenges, including quality, expenses, and customer service, in order to succeed and draw in repeat business.

There were 98,610 Construction Contractors businesses in the UK as of 2023, an increase of 3.5% from 2022. As you can see it’s a crowded market, so you’ve got to get it right!

If you’ve owned a construction business for over five years, we’ve compiled everything you need to know about managing your business in the construction industry and keeping on track for success and growth!

The 10 steps in the construction business process

Managing a construction business requires a well-defined process to ensure efficiency, productivity, and successful project completion. Here are steps to help you create a process to effectively manage your construction business: 

Define Your Business Objectives:

Start by clarifying your business objectives and goals. Understand what you want to achieve as a construction business, whether it’s growth, profitability, customer satisfaction, or a combination of factors. These objectives will serve as a guide when developing your management process. 

Develop a Strategic Plan:

Create a strategic plan that outlines the roadmap for achieving your business objectives. This plan should include a clear vision, mission, and core values that drive your construction business. Identify key strategies, target markets, and competitive advantages that will help differentiate your company in the industry. 

Establish Project Management Procedures:

Develop a standardised construction project management plan that defines how projects will be executed, monitored, and controlled. This includes project management processes for project initiation, planning, execution, monitoring, and closeout. Consider using construction process management software to streamline project documentation, scheduling, and communication. 

Implement Effective Communication Channels:

Establish clear lines of communication within your construction business. Develop communication channels that ensure effective information flow between the construction project manager, teams, subcontractors, and clients. Regular team meetings, progress reports, and collaborative platforms can enhance communication and coordination between project managers and the project team.

Create Document Control Systems:

Implement document control systems to manage project-related documentation efficiently. Establish processes for document creation, distribution, storage, and revision control. This includes contracts, drawings, specifications, change orders, permits, and other important project documents. Ensure easy accessibility and version control to avoid confusion and disputes. 

Build a Reliable Supply Chain:

Develop relationships with reliable suppliers, subcontractors, and vendors. Create a prequalification process to assess their capabilities, track record, and financial stability. Maintain clear communication channels with your supply chain partners to ensure timely delivery of materials and services, minimising project delays and disruptions. 

Implement Quality Assurance and Control:

Establish quality assurance and control processes to ensure that construction projects meet or exceed industry standards and client expectations. This involves regular inspections, testing, and verification of workmanship, materials, and safety protocols. Document non-conformances and implement corrective actions promptly to maintain high-quality standards. 

Prioritise Health and Safety:

Make health and safety a top priority in your construction business. Develop comprehensive health and safety policies and procedures that comply with local regulations. Conduct regular safety training, perform risk assessments, and enforce strict safety protocols to protect your workforce and mitigate project risks. 

Monitor and Analyze Performance:

Regularly monitor and analyse key performance indicators (KPIs) to assess the health of your construction business. Track metrics such as project profitability, schedule adherence, client satisfaction, and employee productivity. Use this data to identify areas for improvement and make informed business decisions. 

Continuously Improve and Adapt:

Embrace a culture of continuous improvement and adaptability. Encourage feedback from your team, subcontractors, and clients to identify areas where processes can be enhanced. Stay updated with industry trends, new technologies, and best practices to ensure your construction business remains competitive and innovative. 

Consider hiring a construction business consultant who can help you through all the above steps and bring fresh new ideas regarding business strategies and how to get new leads.

Best practices for managing a construction company

Let’s look at some of the best practices for continuing the success of your construction business:

Creating a Lead Generation System

All too frequently, a business owner makes the mistake of believing that a website and some basic marketing are all that their company requires. Marketing is crucial, but without the active lead generation to support it, campaigns to promote it frequently fail.

The process of generating leads should entail finding the developers, architects, estate agents, property managers, and designers you wish to collaborate with, scheduling meetings with them, and requesting to be placed on their quote lists. By networking, you may make sure that you don’t pass up a contract bid when one arises.

Leadership

Being a good leader does not include assuming charge and running the whole show. A good leader assigns work to their top workers and surrounds oneself with extremely capable individuals they can trust. This entails allowing a project manager and other important personnel to make choices and handle the task site in their most knowledgeable manner without requiring you to micromanage.

People contributing their own ideas to initiatives not only benefits you, but it also frees you up to concentrate on the long-term viability of the company itself.

Ensuring great quality and staying involved

Being actively involved also entails being present to oversee in person. You can’t be everywhere at once, of course. However, you need to let your staff and clients know that you will be stopping by frequently. Customers will see that you value them and your presence will serve as a reminder to staff that they should always give their best effort.

Looking for expert construction business consultants?

By following these steps, you can establish a robust process to manage your construction business effectively. Remember the construction process should be dynamic and evolve as your business grows and industry dynamics change. Regularly evaluate and refine your management process to optimise performance and drive success. 

For your construction company, hiring a construction business consultant could be revolutionary. Using their knowledge of the construction industry, experience, and advice, a construction business consultant can help you create long-term success strategies, boost profitability, and streamline operations.

You could discover the full potential of your construction company and attain outstanding outcomes by carefully choosing the correct expert and actively engaging in the consulting process.

So why not get in touch and see what we can do for you? Successful businesses start here!

Grab your free business strategy review today to find out how we can help you reach your goals.

Construction Business Process FAQs

What is strategic construction management?

The primary and increasingly significant duty of general management is to position and tie the company to its environment in a way that will assure its future success and protect it from surprises. This is known as strategic management, and it is approached methodically in this regard.

Is managing a construction company profitable?

The construction sector is undoubtedly profitable, but it is also true that it can be challenging to forecast the profit margin in such a sizable sector.

Is there a future in construction?

In the building sector, there are a lot of fascinating advancements taking place. These new developments could lead to better project outcomes, sustainability, and efficiency. Construction technology will continue to advance, increasing the productivity of your daily work and fostering better teamwork.

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Shweta Jhajharia

Shweta Jhajharia is one of the leading authorities on Business Value Building and the creator of the unique 6M Model. Shweta is widely respected as an impactful, intelligent and results orientated professional who helps business leaders unleash their potential to reach meaningful, higher objectives. This realisation of potential and maximisation... Read more
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